• EUR/NZD declined on Monday as downbeat German retail sales data and renewed lockdown measures in the Eurozone weighed on euro.
• EUR/NZD could be on the verge of a deeper fall after sliding below the 55-day moving average and daily cloud top on Monday.
• At GMT 18:02, the pair was trading down 0.26 percent at $1.6848.
• Technical signals are bearish as RSI is heading down at 42, daily momentum studies 5, 9 and 11 DMAs are trending down.
• On the upside, Immediate resistance is located at 1.6851 ( 5 EMA), any close above will push the pair towards 1.6919 (38.2%fib)
• On the downside, support is seen at 1.6811 (23.6%fib ) and break below could take the pair towards 1.6757 (27thJan low).
Recommendation: Good to sell around 1.6850, with stop loss of 1.6950 and target price of 1.6790.
